Cash discount is allowed on ______ repayment of debt

Solution (By Examveda Team)

A cash discount is a reduction in the invoice amount granted by the seller to the buyer as an incentive for early payment.

This type of discount encourages buyers to pay their bills promptly to receive the discount.

Lump sum, Actual, and None of them are incorrect because they do not correctly describe the condition under which a cash discount is typically allowed.

Therefore, the correct answer is Prompt.